2022 MALAYSIA BUDGET
HIGHLIGHTS |
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INDIVIDUAL TAX |
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EXPENSES RELATING TO |
Individual tax relief of up to
RM2,500 to |
Effective Date : |
ELECTRIC VEHICLE (EV) |
be introduced for purchase, install,
lease |
YA 2022 and |
CHARGING FACILITIES |
and subsribe for Electronic Vehicles
(EV) |
YA 2023 |
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charging facilities. |
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EXTENDED SCOPE OF |
It has been proposed that the scope
of |
Effective Date : |
INDIVIDUAL RELIEF ON |
relief (in respect of medical
examination |
From YA 2022 |
MEDICAL EXPENSES FOR |
or consultation services) is expanded
to |
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SELF, SPOUSE OR CHILD |
include mental illness. The
medical |
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consultation services or medical |
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examination must be conducted by the |
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following approved bodies :- |
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a) Psychiatrist registered with
the |
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Malaysian Medical Council under |
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Mental Health Act 2001; |
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b) Clinical psychologist registered
with |
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the Ministry of Health under the Allied |
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Health Professional Act 2016; or |
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c) Counsellors registered with the |
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Malaysian Board of Counsellors under |
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the Counsellors Act 1988. |
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CONTRIBUTION TO |
It has been proposed that the scope
of |
Effective Date : |
EMPLOYEES PROVIDENT |
tax relief for EPF contribution to
be |
From YA 2022 |
FUND (EPF) |
expanded to include voluntary |
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contributions including pensionable |
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civil servant. |
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TAX RELIEF FOR |
It has been proposed that the tax
relief |
Effective Date : |
CONTRIBUTION TO THE |
for Socso contribution to be expanded |
From YA 2022 |
SOCIAL SECURITY |
to include EIS contributions, with
the |
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ORGANIZATION (SOCSO) |
overall limit increased from RM250 to |
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RM350. |
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PURCHASE OF PERSONAL |
Additional tax relief for the
purchase of |
Extended to |
COMPUTER, SMART PHONE |
mobile phone, computer and tablets |
YA 2022 |
AND TABLETS |
of RM2,500 to be extended to YA 2022. |
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EXTENSION OF SPECIAL |
Application deadline extended for |
Extended to |
INCOME TAX RATE TO NON- |
special tax rate of 15% for five |
31 December 2022 |
MALAYSIAN CITIZENS |
consecutive years for non-Malaysian |
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INDIVIDUALS HOLDING KEY |
individuals holding key or C-Suite |
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POSITION IN COMPANIES |
position in companies relocating
their |
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THAT MAKE NEW STRATEGIC |
operations to Malaysia. Applications |
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INVESTMENTS |
must be received by the Malaysian |
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Investment Development Authority |
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(MIDA) by 31 December 2022. |
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FEES PAID TO CHILD CARE |
It has been proposed that the tax
reliefs |
Extended to |
CENTRES |
for fees paid to child care
centres |
YA 2022 and |
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(registered with the Director General |
YA 2023 |
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of Social Welfare under the Child
Care |
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Centre Act 1984) and Kindergarten |
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(registered with the Education Act
1996) |
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for child age 6 years and below be |
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increased from RM1,000 to RM3,000 |
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and this is extended to YA 2022 and |
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YA 2023. |
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FEES EXPANDED ON SELF FOR |
It has been proposed that the tax
relief |
Effective Date : |
COURSE OF STUDY FOR |
for fees expanded on self for any
course |
YA 2022 & |
UPSKILLING AND SELF |
of study undertaken for the purpose
of |
YA 2023 |
ENHANCEMENT |
upskilling and self enhancement
is |
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limited to RM2,000. |
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(The course has to be conducted by
a |
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body recognised by the DG of Skills |
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Development under the National Skills |
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Development Act 2006). |
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DOMESTIC TRAVEL |
It has been proposed that the tax
reliefs |
Extended to |
EXPENSES |
for domestic travel expenses (payment |
31 December 2022 |
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for accommodation at premise |
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registered with the Commissioner of |
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Tourism under the Tourism Industry
Act |
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1992 and entrance fee to tourist |
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attarctions is RM1,000 and this is |
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extended to 31 December 2022. |
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CORPORATE TAX |
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IMPOSITION OF "CUKAI |
To assist parties affected by the
COVID |
Effective Date : |
MAKMUR" |
-19 Pandemic, the government has |
YA 2022 only |
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proposed that a special one-off
"cukai |
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makmur" be imposed on non-Micro,
Small |
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and Medium Enterprise (MSMEs)
companies |
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which generate high profits during
the |
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period of COVID-19 Pandemic as |
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follows:- |
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a) Chargeable income for the
first |
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RM100 million - tax at 24% |
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b) Chargeable income in excess of |
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RM100 million - tax at 33% |
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TAX ON INCOME RECEIVED |
Existing tax exemption on foreign
source |
Effective Date : |
FROM OUTSIDE MALAYSIA |
income will be removed from 01
January |
From 1 January |
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2022. Malaysian residents will
be |
2022 |
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subjected to tax on foreign income |
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remitted into Malaysia. |
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TIME LIMIT ON CARRY |
Companies will be able to carry
forward |
Extended to |
FORWARD OF UNABSORBED |
losses for 10 Years of Assessment
(YA) |
10 consecutive |
LOSSES |
instead of 7 years. This will
apply |
YAs |
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restrospectively from YA 2019. |
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SPECIAL REVISION OF |
All companies are allowed to revise |
Effective Date : |
CORPORATE INCOME TAX |
their income tax estimates in the
11th |
01 Jan 2022 until |
ESTIMATES |
month of the basis period before |
31 Oct 2022 |
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31 October 2022. |
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TAX DEDUCTION FOR COVID- |
Income tax deduction be provided to |
Effective Date : |
19 BOOSTER SHOT |
employers for cost associated with
the |
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self-funded booster vaccine. |
clarification |
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required for tax |
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deduction |
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EXTENTION OF SPECIAL |
Reinvestment allowances (RA) be |
Extended to |
REINVESTMENT ALLOWANCES |
extended for a further two years (YA |
YA 2024 |
(RA) |
2023 and YA 2024) on qualifying |
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capital expenditures. |
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The special RA is at a rate of 60% on |
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qualifying capital expenditures
incurred |
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for the purpose of a qualifying
project |
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which can be set off against 70% of |
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Statutory Business Income or 100% of |
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Statutory Business Income (projects
that |
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have archieved the level of
productivity |
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prescribed by the Minister of
Finance). |
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SPECIAL TAX DEDUCTION ON |
A special tax deduction equivalent to
the |
Extended to |
RENTAL DISCOUNT TO |
amount of rental reduction is given |
June 2022 |
TENANTS |
to taxpayers which provides a
reduction |
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of rental on business premises of at
least |
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30% from the original rental rate for
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a) SME tenants - April 2020 to
December |
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2021 |
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b) All tenants - January 2021 to
December |
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2021, extended to |
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June 2022 |
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DEFERMENT OF INCOME |
MSMES will be given a deferment of |
Effective Date : |
TAX INSTALMENTS FOR |
monthly tax instalments payments for |
Until 30 June 2022 |
MICRO, SMALL AND MEDIUM |
a period of 6 months. |
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ENTERPRISE (MSMES) |
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EXTENSION OF TAX REBATE FOR |
A rebate for a period of 3
consecutive years |
Effective Date : |
NEW MICRO, SMALL AND |
is granted from the year of
assessment in |
01 July 2020 and |
MEDIUM ENTERPRISE (MSMES) |
which a MSMES or LLP first commences |
now extended to |
AND LIMITED LIABILITY |
operation. |
31 December 2022 |
PARTNERSHIP (LLP) |
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The rebate amount is equivalent
to |
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operating or capital expenditures
which |
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has incurred limited to a
maximum |
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amount of RM20,000 for each YA. |
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Any unutilised rebate is not
refundable or |
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allowed to set off against current
and |
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subsequent tax liability. |
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Conditions :- |
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a) Resident and incorporated in
Malaysia; |
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b) Paid up capital contribution not
more |
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than RM2.5 million, gross business |
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income not more than RM50 million; |
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c) Commence operation : 01/07/2020 to |
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31/12/2021, extended to 31/12/2022 |
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(including MSMEs that perform |
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business activities through online |
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platform). |
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DEDUCTION FOR |
Currently, a special tax deduction is
given |
Effective Date : |
RENOVATION AND |
for the cost of renovation and |
01 Mac 2020 and |
REFURBISHMENT |
refurbishment of business premises |
now extended to |
EXPENSES |
incurred from 01 Mac 2020 to 31 |
31 December 2022 |
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December 2021 (qualifying period, |
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subject to a maximum amount |
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of RM300,000 for the entire
qualifying |
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period). |
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It is proposed that the special
deduction |
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be extended to cover expenditure |
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incurred until 31 December 2022. |
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FURTHER TAX DEDUCTION ON |
Under the scheme of Strategic
Programme |
Effective Date : |
EXPENSES FOR EMPLOYEES' |
to Empower the People and Economy |
01 January 2021 |
ACCOMMODATION UNDER |
(PEMERKASA), a further tax deduction
for |
and now extended |
THE SAFE@WORK |
rental expenses on premises for
living |
to 31 December |
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accommodation of their employees who |
2022 |
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work for manufacturing companies and |
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manufacturing -related service
companies |
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that participate in the
Safe@Work |
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Programme will be given a
further |
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deduction of up to RM50,000 per |
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company for amount incurred from |
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01 January 2021 and extended to |
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31 December 2022. |
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DOUBLE DEDUCTION FOR |
The scope of double deductions
for |
Effective Date : |
SCHOLARSHIP PROVIDED |
sponsoring scholarship for students
of |
YA 2022 to |
BY COMPANIES |
higher educational institutional to
be |
YA 2025 |
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expanded to all fields of study at
the |
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following levels and extended to YA
2025. |
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a) Technical and Vocational; |
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b) Diploma, bachelor degree, master |
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degree and doctor of philosophy. |
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INCOME TAX EXEMPTION FOR |
Companies are eligible for 50% tax |
Effective Date : |
ORGANIZING ARTS, |
exemption on statutory income from |
YA 2020 to |
CULTURALS, SPORTS AND |
organizing the following activities
for |
YA 2025 |
RECREATIONAL ACTIVITIES |
YA 2020, and currently extended to |
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IN MALAYSIA |
YA 2025 :- |
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a) Arts and Cultural Activities
approved |
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by the Ministry of Tourism, Arts and |
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Culture; |
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b) Sports and recreational
competitions |
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of international standards approved |
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by the Ministry of Youth and Sports. |
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DOUBLE DEDUCTION FOR |
A person who conduct a SIP approved |
Effective Date : |
STRUCTURED INTERNSHIP |
by TalentCorp is eligible for double |
YA 2022 to |
PROGRAMME (SIP) |
deduction on the following expenses |
YA 2025 |
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incurred in relation to the SIP up to |
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YA 2025. |
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a) Intern's monthly allowances of not
less |
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than RM500; |
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b) Training which capped at RM5,000 |
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for each YA; |
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c) Meals, travelling and
accommodation |
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during the internship period, which |
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capped at RM5,000 for each YA. |
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ACCELERATED CAPITAL |
The ACA has been extended for 3 more |
Effective Date : |
ALLOWANCES (ACA) FOR |
Years of Assessment for locally
assembled |
YA 2020 to |
EXCURSION BUSES |
excursion buses purchased by licensed |
YA 2024 |
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tour operators at the following rate
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a) Initial Allowances (IA) of 20%; |
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b) Annual Allowances (AA) of 40%. |
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GREEN INVESTMENT TAX |
100% Green Investment Tax Allowances |
Effective Date : |
ALLOWANCES/ GREEN |
and 70% Green Income Tax Exemption |
for applications |
TECHNOLOGY INCOME TAX |
to include Rainwater Collection and |
received by MIDA |
EXEMPTION |
Utilisation System Projects.
Applications |
from 01 January |
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must be received by MIDA from 01 |
2022 to 31 |
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January 2022 to 31 December 2023. |
December 2023 |
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The project should be verified by the |
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Malaysian Green Technology
Corporation |
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(MGTC) to qualify for :- |
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a) GITA of 100% on qualifying capital |
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expenditures for qualifying RHS |
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activities to set off against up to 70% |
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of Statutory Income; or |
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b) Income Tax Exemption (GITE) of 70% |
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of Statutory Income for qualifying |
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RHS services activities. |
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REAL
PROPERTY GAIN TAX (RPGT) |
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REVIEW OF REAL PROPERTY |
Real Property Gain Tax (RPGT) will
revert |
Effective Date : |
GAIN TAX (RPGT) RATE |
to 0% for individuals, for disposal
happen |
01 January 2022 |
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in the 6th year and subsequent
years |
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after the year of acquisition. |
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STAMP DUTY |
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STAMP DUTY FOR |
Stamp duty on contract notes to be |
Effective Date : |
INSTRUMENTS OF TRANSFER |
increased from 0.1% to 0.15% from |
01 January 2022 |
OF LISTED SHARES |
01 January 2022. |
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The existing RM200.00 cap for each |
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contract note will be removed. |
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STAMP DUTY EXEMPTION |
Stamp duty exemption for
restructuring |
Extended to : |
FOR RESTRUCTURING OR |
or rescheduling of a business loan or |
31 December 2022 |
RESCHEDULING OF LOAN/ |
financing agreements executed between |
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FINANCING AGREEMENT |
a borrower or customers and a
financial |
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institution is extended to 31
December |
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2022 |
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STAMP DUTY EXEMPTION |
Stamp duty exemption on merger and |
Effective Date : |
FOR MERGER AND |
acquisition related instruments is to
be |
effective for |
ACQUISITION |
extended for another 1 year. |
application in |
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respect of M&A |
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of companies |
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received by |
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MEDAC from |
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01 July 2021 to |
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30 June 2022 and |
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M&A related |
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instruments |
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executed not later |
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than 31 December |
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2022 |
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FINANCING AGREEMENT |
100% stamp duty exemption be given on |
Effective Date : |
FOR PEER-TO PEER (P2P) |
loan/financing agreements
executed |
effective from |
FINANCING |
between companies and investor for |
instruments |
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funds raised on P2P platform
registered |
executed from |
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and recognised by the Securities |
01 January 2022 |
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Commissions Malaysia. |
to 31 December |
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2026 |
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P2P financing is an online financing |
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platform for companies to raise |
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financing from a group of investor
for |
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business or working capital as well
as |
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financing invoices. |
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INDIRECT TAX |
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SPECIAL VOLUNTARY |
An indirect tax Special
Voluntary |
Effective Date : |
DISCLOSURE PROGRAMME |
Disclosure Programme (SVDP) will be |
has not been |
(SVDP) |
introduced, in phases. Penalty
remissions |
proposed |
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of 100% in Phase 1 and 50% in Phase 2 |
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are proposed. |
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In addition, remission of the primary |
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tax underpaid will also be considered
in |
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certain cases. |
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SALES TAX EXEMPTION ON |
Sales tax exemption (100%) on the
sales |
Extended to : |
PASSENGER MOTOR VEHICLES |
of locally assembled passenger motor |
30 June 2022 |
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vehicles (including SUV and MPV)
and |
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(50%) on the sales of imported
passenger |
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motor vehicle be further extended for |
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6 months to 30 June 2022. |
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SERVICE TAX ON DELIVERY |
Service tax will be imposed on
delivery |
Effective date : |
SERVICES |
services provided by any service
provider |
from 01 July 2022 |
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including e-commerce platforms (but |
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excluding food and beverages delivery |
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services as well as logistics
services). |
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BROKERING SERVICES IN |
Service tax on brokerage activities
for |
Effective Date : |
RELATION TO TRADING |
listed shares will be exempted from |
from 01 January |
OF LISTED STOCK |
01 January 2022. |
2022 |
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IMPORTED LOW VALUE |
Sales tax to be imposed on imported
low |
Effective Date : |
GOODS |
value goods (goods which value does
not |
01 January 2023 |
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exceed RM500) sold online and
couriered |
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to customers in Malaysia, from
01 |
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January 2023. |
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TOURISM TAX EXEMPTION |
Accommodation premise operators |
Extended to : |
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registered under the Tourism Tax Act |
31 December 2022 |
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2017 are exempted from charging |
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tourism tax until 31 December 2021.
This |
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exemption will be further extended to |
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31 December 2022. |
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ENTERTAINMENT DUTY |
Entertainment premises such as theme |
Extended to: |
EXEMPTION FOR |
parks, performance stage, sport and |
31 December |
ENTERTAINMENT PREMISES |
competition event and movie theatres
in |
2022 |
IN FEDERAL TERRITORIES |
the Federal Territories are exempted
from |
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paying entertainment duty on the |
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admission fee from 01 April 2021 and |
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now extended to 31 December 2022. |
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IMPORT DUTY, EXCISE DUTY, |
Full import duty exemption given on |
Effective Date : |
AND SALES TAX ON IMPORTED |
components for locally assembled |
01 January 2022 |
AND LOCALY |
vehicles (CKD) and full excise duty
and |
to 31 December |
MANUFACTURED |
sales tax exemption given on CKD |
2025 |
ELECTRONICS VEHICLES (EV) |
Electric Vehicles (EV). |
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Full import duty and excise duty |
Effective Date : |
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exemption on imported CBU |
01 January 2022 |
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Electric Vehicles (EV). |
to 31 December |
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2023 |
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EXCISE DUTY ON LIQUID OR |
Excise duty to be imposed on premixed |
Effective Date : |
GEL CONTAINING NICOTINE |
drinks with sugar content such as |
from 01 April 2022 |
USED IN E-CIGARETTE AND |
chocolate or cocoa, malt, coffee or
tea. |
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VAPE |
Excise duty will be imposed on
liquids |
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or gels containing nicotines for the
use of |
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electronic cigarettes and vape. |
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OTHER PROPOSAL |
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IMPLEMENTATION OF TAX |
Implementation of tax identification |
Effective Date : |
IDENTIFICATION NUMBER |
numbers for all companies, and |
from 01 January |
(TIN) |
individuals above 18 years of age. |
2022 |
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INTRODUCTION OF TAX |
Implementation of Tax Compliance |
Effective Date : |
COMPLIANCE CERTIFICATE |
Certificate (TCC) as a pre-condition |
from 01 January |
(TCC) |
for government procedures for |
2023 |
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government projects. |
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The
highlights are for general guidance only. It is prepared based on the
information |
available
as at 29.10.2021 and may subjected to the amendments after the issuance |
of the Finance Bill 2021. |
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